The leader of Britain’s biggest union said yesterday that he expected the Government to provide financial support to Jaguar Land Rover before Christmas.

Tony Woodley, joint general secretary of Unite, said that there was little reason for the Government not to act now that Jaguar Land Rover’s owner, Tata Motors of India, had injected more cash.

The carmaker, which employs 15,000 people in Britain, was reported to have received “tens of millions” from Tata, which will stave off an immediate cashflow crisis while ministers consider the case for a taxpayer-funded bailout.

Mr Woodley told The Times: “I’m delighted that Tata has put more financing into the company. It is obviously right that they do so, having bought it only nine months ago.

“I would now be extremely surprised if the Government did not give financial support to the company as well – and I would be very surprised if it wasn’t this side of Christmas. I would be disappointed if there was not confirmation of the availability of a loan or credit guarantees at least.”

Despite Mr Woodley’s optimism, senior Whitehall sources insist that a bailout is unlikely to come before Christmas.

A key sticking point is believed to be the willingness of Tata to open its books. Lord Mandelson, the Business Secretary, was said to be “playing hard-ball” with the company on this issue.

About £40 million worth of bills are thought to have been due for payment yesterday and it is understood that this is why an immediate cash injection from Tata was required.

Mark Foster, a Jaguar Land Rover spokesman, refused last night to confirm that Tata had made an extra payment yesterday.

He said: “As far as we are concerned, the situation is little changed from how it was last Friday night. I’m not expecting it [a government financial support package] this side of Christmas, but then we are not fully in control of this, it is the Government.”

Tata Motors, which bought Jaguar Land Rover from Ford in March for $2.3 billion (£1.5 billion), borrowed $3 billion to finance the acquisition and to step up production of its low-cost Nano model. Analysts in India said that the company had struggled to repay this and that having to put further funds into Jaguar Land Rover would strain its finances further.

But shares of Tata Motors – which have lost almost three quarters of their stock market value this year – rose by 4.91 per cent on the Mumbai stock exchange yesterday in expectation of a rescue package.

A spokesman for Tata said that the company was continuing to seek support from the Government.

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